Mr. Gustavel reported that IIB's net income before tax for the quarter ended December 31, 2010, was $107,000, compared to a net loss before tax of $2.5 million for the same period a year ago and a net loss before tax of $2.4 million for the third quarter of 2010. After posting a $3.1 million non-cash income tax adjustment to IIB's deferred tax assets, IIB's net loss after tax for the quarter ended December 31, 2010, was $2.9 million, or $0.46 per diluted share, compared to a net loss after tax of $1.3 million, or $0.20 per diluted share, for the same period a year ago. IIB's net loss after tax for the year ended December 31, 2010, including the non-cash adjustment, was $5.7 million, or $0.89 per diluted share, compared to a net loss after tax of $6.7 million, or $1.06 per diluted share, for the year ended December 31, 2009. Prior period results have been restated to reflect earlier revisions to amounts reported for 2009.

Primarily because of provision for loan loss expenses incurred over the last two years, IIB accumulated a substantial deferred tax asset that represents timing differences related to future tax benefits. IIB expects to recapture some or all of the non-cash adjustment to its deferred tax asset when it becomes more certain the Bank will be able to realize the tax benefit through future earnings. In that event, the Bank would be able to reduce its future income tax expense.

"We made solid progress in addressing non-performing assets, reducing concentrations in land and land development loans, and improving profitability. While we are pleased with the progress, there is still work to be done. Improved asset quality, reduced costs, and managed growth will be priorities in 2011," Mr. Gustavel said. IIB continues to maintain very strong capital and remains well above the threshold required to be considered "Well-Capitalized" under regulatory guidelines. The Total Risk-Based Capital Ratio improved to 16.9% at December 31, 2010, compared to 15.4% at December 31, 2009.

In response to the Bank's plan to shrink the balance sheet, IIB's total assets as of December 31, 2010, decreased $51.6 million, or 10.5%, to $441.6 million from $493.2 million at December 31, 2009. Total loans, including loans held-for-sale, at December 31, 2010, decreased $92.0 million, or 24.0%, to $291.1 million from $383.0 million at December 31, 2009. Total deposits and customer repurchase agreements decreased $46.5 million, or 11.2%, to $368.8 million at December 31, 2010, compared to $415.3 million at December 31, 2009.

As of December 31, 2010, IIB's reserve for loan loss (the "Reserve") totaled $9.9 million, or 3.4% of total loans, excluding loans held-for-sale. Monthly, the Bank goes through a rigorous review of its loan portfolio and an extensive analysis to confirm the adequacy of its Reserve. The analysis takes into account the known issues, while providing for inherent losses in the loan portfolio. Non-performing assets declined 12.0% to $41.6 million, or 9.4% of total assets at December 31, 2010, compared to $47.1 million, or 9.8% of total assets as of September 30, 2010. Non-performing assets at December 31, 2010, included $30.9 million in non-performing loans and $10.7 million in other real estate owned.

About IIB

IIB was established in 1993 as an Idaho state-chartered, commercial bank and currently operates branches in Boise (3), Meridian, Coeur d'Alene, Nampa, Mountain Home, Hayden, Caldwell, Star, Eagle, and Sun Valley/Ketchum, Idaho. IIB has approximately 200 employees throughout the State of Idaho. To learn more about IIB, visit us online at www.theidahobank.com.

Statements contained herein concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and any other statements that are not historical facts are forward-looking statements that are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, and as such, are subject to a number of risks and uncertainties that might cause actual results to differ materially from expectations or our stated objectives. Factors that could cause actual results to differ materially, include, but are not limited to: continued declines or worsening in regional and general economic conditions; changes in interest rates, deposit flows, demand for loans, real estate values, competition, or loan delinquency rates; changes in accounting principles, practices, policies, or guidelines; changes in legislation or regulations; changes in the regulatory environment; changes in monetary policy of the Federal Reserve Bank; changes in fiscal policy of the Federal government and the State of Idaho; changes in other economic, competitive, governmental, regulatory and technological factors affecting operations, pricing, products, and services; material unforeseen changes in the liquidity, results of operations, or financial condition of the Bank's customers. These risks and other factors are described in greater detail in the Bank's filings with the Federal Deposit Insurance Corporation, including, without limitation, the Item 1A Risk Factors section of the Bank's Annual Report on Form 10-K for the year ended December 31, 2009. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Bank undertakes no responsibility to update or revise any forward-looking statements.